Institutional Drivers of Agrohub Development: Evidence from a Transition Economy
https://doi.org/10.47703/2789-8253-2026-1-104-118
Abstract
Despite the implementation of various government programs to support the agricultural sector, the institutional foundations for the formation of agrotechnological hubs remain insufficiently systematized and require a comprehensive analysis. The purpose of the study is to systematise the institutional conditions that influence the formation of agrohubs as key elements of the modernisation of Kazakhstan’s agro-industrial complex. The research methods are based on an institutional approach and qualitative content analysis of government programs, strategic documents, and analytical reports on the development of the agro-industrial complex. The initial data include state strategic documents, analytical reports, and statistical indicators on agricultural development in Kazakhstan. The results of the study showed deviations between the planned and actual indicators of industry development. Investments in agricultural fixed assets amounted to 1672.7 billion tenge, against the planned level of 1800.7 billion tenge (–128 billion tenge), and labour productivity grew by 112.8 p.p., against the target of 122 p.p. (–9.2 p.p.). At the same time, gross agricultural output reached 9.8 trillion tenge, grain production amounted to 19.3 million tons, and industry implemented 286 investment projects totalling 279.6 billion tenge, reflecting positive dynamics in the sector’s development. The findings suggest that Kazakhstan has developed a relatively comprehensive institutional framework for agricultural modernisation. The prospects for further research include a quantitative assessment of the effectiveness of agricultural policy instruments, spatial modelling of agrohub locations, and an analysis of the role of digital and innovative technologies in the development of agro-industrial clusters.
Keywords
Agriculture,
Agricultural Economy,
Agribusiness,
Agrohub,
Economic Growth,
Government Support,
Modernisation
Supporting agencies: This research was funded by the grant “Research on new instruments for the development of agrotechnological hubs in the regions of Kazakhstan to enhance the country’s competitiveness in the Eurasian region” AP23489234
About the Author
Rab Nawaz Lodhi
Hailey College of Commerce, University of the Punjab
Pakistan
Pakistan
PhD, Associate Professor
Lahore
References
1. Balcha, L. L., Serbeh-Yiadom, K., & Asfaw, M. (2014). The need for agro-based value-chain industrial clustering in Ethiopia. Journal of Economics and Sustainable Development, 5(1), 107–114.
2. Barrett, C. B., Bachke, M. E., Bellemare, M. F., Michelson, H. C., Narayanan, S., & Walker, T. F. (2012). Smallholder participation in contract farming: Comparative evidence from five countries. World Development, 40(4), 715–730. https://doi.org/10.1016/j.worlddev.2011.09.006
3. Buchenrieder, G., Hanf, J. H., & Pieni ˛adz, A. (2009). 20 years of transition in the agri-food sector: Lessons learned. German Journal of Agricultural Economics, 58(7). https://doi.org/10.52825/gjae.v58i7.1758
4. D’Oronzio, M. A., & Sica, C. (2021). Innovation in Basilicata agriculture: From tradition to digital. Economia Agro-Alimentare, 23(2), 1–18. https://doi.org/10.3280/ecag2-2021oa12210
5. Dorward, A., Kydd, J., Morrison, J., & Urey, I. (2004). A policy agenda for pro-poor agricultural growth. World Development, 32(1), 73–89. https://doi.org/10.1016/j.worlddev.2003.06.012
6. FAO. (2010). Agricultural value chain development: Threat or opportunity for women’s employment? (Gender and Rural Employment Policy Brief No. 4). Retrieved December 30, 2025 from https://www.fao.org/4/i2008e/i2008e04.pdf
7. Fujita, M., Krugman, P., & Venables, A. J. (1999). The spatial economy: Cities, regions, and international trade. MIT Press.
8. Gromenkova, S. (2022). Global production and sales chains in the agriculture sphere: Modern policy and practice. Herald of Khmelnytskyi National University: Economic Sciences, 308(4), 140–148. https://doi.org/10.31891/2307-5740-2022-308-4-22
9. Kahuthia, J., & Karanja, W. (2025). Fostering agro-industrial growth in Kiambu County: A bottom-up approach to industrialization and economic transformation. African Multidisciplinary Journal of Research, 10(1), 174–196. https://doi.org/10.71064/spu.amjr.10.1.2025.393
10. Kniazieva, O., Shevchenko, V., Petrenko, O., & Osyk, S. (2025). Formation of the mechanism of digitalization and ecosystem modeling of agro-industrial enterprises in the circular economy. Herald of Khmelnytskyi National University: Economic Sciences, 344(4), 607–616. https://doi.org/10.31891/2307-5740-2025-344-4-86
11. Makhmadizoda, F., & Mukhsinova, P. (2025). Methodology for integrated structures’ formation in the agro-industrial complex taking into account cluster policy. Regionalnaya ekonomika. Yug Rossii, 13(2), 15–26. https://doi.org/10.15688/re.volsu.2025.2.2
12. Mashrabovich, T. J., & Toxtasinovna, U. D. (2024). Agro-industrial clusters as a form of innovative development in the industry. International Journal of Advance Scientific Research, 4(3), 239–243. https://doi.org/10.37547/ijasr-04-03-43
13. Muraru-Ionel, C., Muraru, S. L., Cristea, O.-D., & Condruz, P. (2019). Innovative and cross-sectoral clusters as facilitators of value-added chains in agriculture: Smart agro-clusters in Romania. In Rural development 2019: Research and innovation for bioeconomy: Proceedings of the 9th international scientific conference (pp. 445–450). Vytautas Magnus University. https://doi.org/10.15544/RD.2019.067
14. Najork, K. (2022). Biotechnology and the socio-biological production of vulnerability: Genetically engineered cotton in Telangana, India. https://doi.org/10.53846/goediss-9411
15. Nikolaienko, S. M. (2022). Formation of a territorial cluster in the dairy industry. Business Inform, 10, 89–96. https://doi.org/10.32983/2222-4459-2022-10-89-96
16. Nikoliuk, O., Savchenko, T., & Volyk, S. (2022). Strategic aspects of cluster organization of agricultural production. Ukrainian Journal of Applied Economics and Technology, 55(2), 447–452. https://doi.org/10.36887/2415-8453-2022-2-55
17. Otsuka, K., & Ali, M. (2020). Strategy for the development of agro-based clusters. World Development Perspectives, 20, 100257. https://doi.org/10.1016/j.wdp.2020.100257
18. Reardon, T., & Timmer, C. P. (2007). Transformation of markets for agricultural output in developing countries since 1950. In R. E. Evenson & P. Pingali (Eds.), Handbook of Agricultural Economics (Vol. 3, pp. 2807–2855). Elsevier. https://doi.org/10.1016/S1574-0072(06)03055-8
19. Salih, A. A. (2021). Mechanism for the dissemination of agricultural technologies in Romania. University of Thi-Qar Journal of Agricultural Research, 10(2).
20. Shvets, N., Shevtsova, H., Pidorycheva, I., Prokopenko, O., & Maslosh, O. (2023). Sustainable development of agriculture based on the smart specialisation approach: Cases of Central and Eastern European countries. Agricultural and Resource Economics, 9(1), 260–282. https://doi.org/10.51599/are.2023.09.01.12
21. Swinnen, J. F. M. (2007). Global supply chains, standards and the poor. CAB International.
22. Voronkova, O., Petrova, L., Mezhova, A. Y., Anufrieva, I. Y., & Slukina, A. A. (2023). Organic supply chain management products in food clusters: Regional aspect. Siberian Journal of Life Sciences and Agriculture, 15(3), 99–118. https://doi.org/10.12731/2658-6649-2023-15-3-99-118
23. World Bank. (2008). World development report 2008: Agriculture for development. Retrieved December 30, 2025 from https://openknowledge.worldbank.org/handle/10986/5990
24. Yang, Y., & Li, E. (2021). A theoretical framework and empirical analysis of the formation mechanism of green agricultural industry cluster. Resources Science, 43(1), 69–81. https://doi.org/10.18402/resci.2021.01.06
25. Zhang, Z., Zhao, Y., Bu, M., Ye, W., & Zhang, H. (2023). Research on the whole rice industry chain model from the perspective of rural revitalization. Frontiers in Humanities and Social Sciences, 3(4), 68–76. https://doi.org/10.54691/fhss.v3i4.4755
Review
For citations:
Lodhi R. Institutional Drivers of Agrohub Development: Evidence from a Transition Economy. Eurasian Journal of Economic and Business Studies. 2026;70(1):104-118. https://doi.org/10.47703/2789-8253-2026-1-104-118
Views:
212
JATS XML
Email this article 